•Framework developed to assess supply chain sustainability for Industry 4.0 needs.•Remarkable scope for sustainable supply chain leveraging IoT exists.•IoT coupled with industry 4.0 benefits organizations to take informed decisions.•Industry 4.0 sets the tone for the future sustainable supply chain. Supply Chain organizations in the present global environment operate in market that is increasingly complex and dynamic in nature. Sustainable supply chain becomes inevitable to meet the aggressive change in the customer requirements. Based on the reviews, it is revealed that manufacturing companies need to speed up in shifting the focus towards sustainability and make use of technology like ‘Internet of Things’ (IoT) to meet the organization’s goal. The objective of this research paper is to review the various aspects of SCM, ERP, IoT and Industry 4.0 and explore the potential opportunities available in IoT embedded sustainable supply chain for Industry 4.0 transformation. In this review, a comprehensive study on various factors, that affects the sustainable supply chain were analyzed and the results recorded. Based on the review, a framework for assessing the readiness of supply chain organization from various perspectives has been proposed to meet the requirements of the fourth Industrial Revolution. The conceptual framework model has been formulated from five important perspectives of supply chain management namely Business, Technology, Sustainable Development, Collaboration and Management Strategy. This study furnishes the criteria that can be assessed by companies to realize the readiness for industry 4.0 transformation.